Amag Austria Metall Ag · VIE:AMAG

Amag Austria Metall — FY2013 Earnings Presentation

31 slides from Amag Austria Metall's earnings presentation, Feb 28, 2014

  1. Slide 1: Full-year results 2013

    Full-year results 2013 28 February 2014

  2. Slide 2: Disclaimer

    Disclaimer  We have compiled the forecasts, budgets and forward-looking assessments and statements contained in this presentation on the basis of information available to us. In the event that the assumptions underlying these forecasts prove to be incorrect, targets are not achieved or certain risk

  3. Slide 3: Highlights, shareholder structure and market development

    Highlights, shareholder structure and market development

  4. Slide 4: Highlights

    Highlights 1 Stabilisation of the shareholder structure - Following its takeover bid, B&C Alpha Holding GmbH owns 37.7 % of the shares 2 Strategy - AMAG 2014 strategic project on budget and on schedule - Strategic framework for AMAG 2020 currently under preparation 3 Market environment and operation

  5. Slide 5: Shareholder structure

    Shareholder structure Stable structure following takeover bid by B&C Alpha Holding GmbH Shareholder structure as at 31 Dec. 2012 Shareholder structure as at 31 Dec. 2013 19.5% 27.0% 29.99% 0.2% 37.7% 5.0% 0.4% 5.0% 5.0 % 5.0% 5.0 % 16.5% 11.1% 5.0% 16.5% 11.1% B&C Alpha Holding GmbH 1) 3) Oberbank I

  6. Slide 6: Projected global growth for primary aluminium

    Projected global growth for primary aluminium Consumption by region 2013/2018e: (1000 t) CAGR: +5.5% 2012/2013e: +5.1% 64,802 2011/2012: +5.5% Australia, South-East Asia 49,978 47,566 Africa 45,006 37,420 38,662 Middle East 34,341 Central/South America China Asia (ex. China) Europe * North America 2

  7. Slide 7: Aluminium price

    Aluminium price Low aluminium price in 2013 LME aluminium price (three-month settlement) (USD / t) 3.500 2.200 2.100 3.000 2.000 1.900 31 Dec. 2013 1,811 USD/t 2.500 1.800 1.700 2.000 Jan 13 Mrz 13 Jun 13 Sep 13 Dez 13 Average aluminium price 1.500 2013 1,887 USD 2012 2,050 USD 1.000 2008 2009 2010

  8. Slide 8: Projected global growth for rolled products

    Projected global growth for rolled products Consumption by region 2013/2018e: [1000 t] CAGR: +5.4 % 2011/2012: 2012/2013e: 27,719 +3.4 % +4.6 % 21,282 Other* 19,761 20,380 17,328 18,034 China 15,738 Asia (ex. China) Western Europe North America 2008 2009 2010 2011 2012 2013e - 2018e  Positive outlo

  9. Slide 9: Rolled products in Western Europe

    Rolled products in Western Europe Transportation industry as a key driver of demand [1.000 t] 90 63 4,390 348 41 3,816 31 1,123 775 3,267 3,041 Demand 2013 Construction Transportation Machinery Packaging Other Demand 2018 Construction, machinery, packaging and other Transportation 9 9 Source: CRU, N

  10. Slide 10: Operational business, product innovations and AMAG 2014

    Operational business, product innovations and AMAG 2014

  11. Slide 11: Record shipments

    Record shipments Full capacity utilisation in all divisions again in 2013 (1,000 t) 351,7 Year-on-year [1.000 t] changes by segment (1.000 t) 344,2 Metal +0.4% +0.5 (2013: 115,000 t) Casting (2013: 79,100 t) +0.7 +0.9% Rolling (2013: 157,600 t) +6.3 +4.2%  Strong growth in volume in Rolling Divisio

  12. Slide 12: Aircraft industry supply contracts

    Aircraft industry supply contracts Multi-year contracts concluded with Airbus and Boeing  Conclusion of two multi-year supply contracts in the 2013 fiscal year  Airbus: Supply of AMAG aluminium plates, -sheets and –strips with a order volume up to 100 mEUR  Boeing: contract adds high-strength she

  13. Slide 13: Sustainable e-mobility solutions

    Sustainable e-mobility solutions AMAG TopCast® FAST used in BMW i3 Innovative foundry alloys characterised by:  minimal CO2 emissions, and maximum mechanical stability and energy absorption in event of crashes  minimum of 20% recycling content1  use of at least 97% hydropower in production of pri

  14. Slide 14: Automotive: qualifications for structure and outer skin applications

    Automotive: qualifications for structure and outer skin applications Initial successes in comprehensive qualification processes for materials and surface passivation  Audi: qualification secured for outer skin applications  Chrysler: qualification secured for structural applications  GM: level 1

  15. Slide 15: AMAG 2014 site expansion programme

    AMAG 2014 site expansion programme Rolling mill project on budget and on schedule Slab casthouse Plate production centre Homogenisation Hot rolling mill 15 15

  16. Slide 16: Financial result 2013

    AMAG-_ AUSTRIA METALL Financial result 2013

  17. Slide 17: Solid earnings in 2013

    Solid earnings in 2013 External shipments Av. aluminium price Revenue EBITDA (Group) (USD/t) (kt) (mEUR) (mEUR) Δ -8 % Δ +1 % Δ -4 % Δ -8 % 327.8 329.6 819.8 786.4 2,050 6 133.8 6 122.8 5 1,887 4 498 491 80 64 5 112 101 6 43 51 204 189 2012 2013 2012 2013 2012 2013 2012 2013 Metal Casting Rolling Se

  18. Slide 18: AMAG Group: key indicators

    AMAG Group: key indicators Solid earnings in 2013 Q4 Q4 +/- Q1-Q4 Q1-Q4 +/-  Shipments at new record high of 2013 2012 (%) 2013 2012 (%) 351,700 t Shipments 77,800 78,000 -0 351,700 344,200 2  Decline in revenue due to low (t) aluminium price Revenue1 170.5 180.9 -5 786.4 819.8 -4 (mEUR)  Decreas

  19. Slide 19: Consolidated revenue

    Consolidated revenue Revenue reconciliation Change by division (mEUR) (mEUR) 819.8 -36.2 22.7 -9.0 -9.6 0,0 Service -5.4 4.1 786,4 -6,9 Rolling -10,7 Casting 2012 2013 -15,8 Metal  Revenue below last year’s level due to lower aluminium price  Higher shipments in Rolling and Metal divisions, and hi

  20. Slide 20: Consolidated earnings

    Consolidated earnings EBITDA reconciliation Change by division (mEUR) (mEUR) 12.3 -4.1 -1,4 Service 133.8 -6.5 -3.2 -2.9 -6.6 122.8 -16,4 Rolling -1,5 Casting 2013 8,2 Metal 2012  Positive earnings contribution due to higher shipments, especially in the Rolling division  Higher premiums reduced th

  21. Slide 21: Cash flows changes

    Cash flows changes Investments largely covered by cash flows from operating activities Cash flows from operating activities Cash flows from investing activities (mEUR) (mEUR) -125,2 122,2 117,4 104,5 -75,9 -86,7 -32,8 -43,5 -43,5 -43,1 -38,5 2011 2012 2013 2011 2012 2013 AMAG 2014 Ongoing investment

  22. Slide 22: Solid capital and financial structure

    Solid capital and financial structure High equity ratio Low net debt1 (mEUR) (mEUR) 62,0% 61,8% 62,6% 2,4% 4,7% 8,6% 542,6 544,1 584,4 50,0 13,0 25,8 2011 2012 2013 2011 2012 2013 Equity Equity ratio Net debt Gearing ratio in %  Solid capital and financial structure  Net debt also low thanks to hi

  23. Slide 23: Metal division

    Metal division Higher profit contribution despite low aluminium price Q4 Q4 +/- GJ GJ +/- EBITDA 2013 2012 (%) 2013 2012 (%) (mEUR) Shipments 23,200 25,800 -10 115,000 114,500 0 26,4 (t) 24,8 Revenue 120.5 122.8 -2 547.3 562.5 -3 (mEUR) EBITDA 13,013,4 12.6 8.1 56 50.8 42.6 19 11,5 12,313,2 12,7 12,

  24. Slide 24: Metal division: hedging structure

    Metal division: hedging structure Hedging Exposure Realised aluminium price 100% Market Price Aluminium price (spot) realised 90% LME-exposure (USD/t) (USD/t) 2013 1,845 1,995 80% 1) 1,500 1,623 70% put-option 2014 - simulation 1,750 1,809 69% 60% 2,000 2) 2,017 88% 50% min/max-option • Owing to the

  25. Slide 25: Casting division

    Casting division Solid earnings in challenging market environment Q4 Q4 +/- GJ GJ +/- EBITDA 2013 2012 (%) 2013 2012 (%) (mEUR) Shipments 19,100 18,100 6 79,100 78,400 1 (t) 2,5 2,4 Revenue 2,2 27.8 24.6 13 110.4 119.1 -7 (mEUR) 1,8 1,9 EBITDA 1,5 0.9 0.6 46 4.6 6.1 -24 1,2 1,3 (mEUR) 1,0 1,0 0,9 EB

  26. Slide 26: Rolling division

    Rolling division Shipments at new record high Q4 Q4 +/- GJ GJ +/- EBITDA 2013 2012 (%) 2013 2012 (%) (mEUR) Shipments 35,400 34,100 4 157,600 151,300 4 22,3 22,1 22,7 (t) 19,6 18,7 18,8 Revenue 17,8 126.4 129.5 -3 569.4 565.6 1 16,3 15,6 (mEUR) 13,5 EBITDA 12,2 10.6 15.6 -32 63.5 79.9 -21 10,6 (mEUR

  27. Slide 27: Outlook

    AMAG-_ AUSTRIA METALL Outlook

  28. Slide 28: Outlook for 2014 financial year

    Outlook for 2014 financial year AMAG Austria Metall AG  Strong global demand growth of some 6% expected for primary aluminium1 and rolled products2 in 2014  Challenging trading conditions due to low downstream margins and the low aluminium price  Significant increase in shipments again anticipate

  29. Slide 29: Dividend and share price

    AMAG-_ AUSTRIA METALL Dividend and share price

  30. Slide 30: Dividend and share price

    Dividend and share price Total shareholder return (TSR) of around 25 % since IPO Dividend per share Performance of the AMAG share price since the IPO (%) [EUR] 8 Apr. 2011 – 30 Dec. 2013 AMAG Austria Metall AG +14% Austrian Traded Index (ATX) -11% 0,60 0.601) 125 100 75 50 2013 2014 Apr 11 Jul 11 Ok

  31. Slide 31: Competence in Aluminium

    Competence in / | Aluminium AMAG-_ AUSTRIA METALL

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